The Geekdex (GDX12)

The Geekdex, or GDX12, is a price-weighted index representing the composite value of one share in twelve different companies whose products and services are of strategic importance to any self-respecting geek, nerd or hardcore gamer.


What Shares Are Included in the GDX12?

Let us pick, completely at random, a single individual to act as a representative sample of the gamer/geek population and examine his purchasing decisions.


Deciding that a night of gaming is in order, and sticking to the traditional route of acquiring video games he heads for GameStop (GME) and then stops at a nearby store to pick up a 2-litre bottle of Coke (KO) and a bag of Doritos (PEP). Back at his apartment he puts his bags of loot on the table, obscuring a Nintendo 3ds (NTDOY) and starts fighting viciously with the leads from his PlayStation 3 (SNE) and Xbox (MSFT).


This done he sits down to decide what to play first; Battlefield 3 (EA) or Call of Duty: Black Ops 2 (ATVI). Civilisation 5: Gods and Kings (TTWO) is placed to the side until the graphics card (NVDA) he ordered that morning arrives for his PC. He's on the verge of throwing the bag in the rubbish bin before he remembers there is a pre-order for Company of Hero's 2 (THQI) in there.


He sits himself down and takes controller in hand. Like a haughty French emperor he places his Tritton headset (MCZ) on, prepares to do battle and scream obscenities at a 13 year old kid in his moms basement in Ohio when he knifes him in the back.


Between them these companies have a market capitalization of around $600 billion, more than the entire GDP of Sweden. The GDX12 takes the value of one share in each of the companies and adds it together to get the GDX12 value for that day. A multiplier is then applied to the number to give a points value ($295 = 1000) and the number is graphed, allowing an overview of how the "Geek Industry" is performing. Of course the customers of these companies aren't solely gamers and non-gaming news and events will influence the stock price of these companies and as such effect the GDX12 itself but in general the GDX12 can be used as a handy tool to monitor the purchasing decisions of a specific demographic and the strength or weakness of an industry currently undergoing a period of turmoil.


The GDX12 started recording data on the 2cd of September 2011 and closed its first day at 964.54 points ($284.54). It closed at a high of 1014.75 ($299.35) on the 28th of March 2012 and closed at a low of 894.61 ($263.91) on the 1st of June 2012.